Although many states have legalized the use of medical marijuana, under federal law any use of marijuana is illegal. This situation has caused problems for many employers that have strict drug use policies. The Colorado Supreme Court has ruled that employees who use medical marijuana are not protected by the state's "lawful activities statute" and can be fired, resolving the issue for employers in that state. [Coats v. Dish Network]

The employee in this case, Brandon Coats, is a quadriplegic who has been confined to a wheelchair since he was a teenager. In 2009 he registered for and obtained a state-issued license to use medical marijuana to treat painful muscle spasms caused by his quadriplegia. Coats consumes medical marijuana at home, after work, and in compliance with his license and Colorado state law.

Between 2007 and 2010, Coats worked for Dish Network as a telephone customer service representative. In May 2010, Coats tested positive for marijuana during a random drug test.